Search This Site

Malaysia Old & Used Cars need new market for dealers to stay afloat

It was reported that the used car market in Malaysia is not growing and the industry body is
looking at various measures to give a spurt to sales volume.

The used car market is stagnant and used car dealers
are struggling to stay afloat, according to the Federation of Motor and
Credit Companies Association of Malaysia.To further address this, the association plans to introduce measures such as a
vehicle inspection system which members can use and a new online
marketplace.
It would also look for used car financiers from Japan, China and
Taiwan as part of the strategies to address these issues, it’s president
Tony Khor Chong Boon said.

Khor told The Malaysian Reserve (TMR) that used car dealers only sold
about 400,000 units, whereas sales of new cars were reaching 600,000
units.He said despite the sales increase of new cars for the past 15 years, the used car market remained unmoved.

“Malaysia is the only country where used cars are not selling like
hot cakes. In countries like the US, used car sales double the sales of
new ones. In Europe, sales of these second-hand cars are twice the
number of brand new cars, while Japan’s used car segment is 1.5 times
more than new cars,” Mr. Khor told TMR.

For 17 years, the report said, new vehicle sales had risen more than 67% but sales of used cars had not improved.
Khor said the association, which represents about 3,500 dealers from
the 5,000 used car operators, had identified three main reasons for
this: low level of customer confidence in used cars, value depreciation
of second-hand cars and strict hire purchase financing.
That is why the association is working on some new measures to
improve the situation. This includes an inspection system for dealers.
" What it means is that, whatever cars you promote, it must first go
through the association’s screening to make sure all the information is
genuine. Customers can also go to our appointed centres to get the cars
inspected and obtain a detailed report, ", Mr. Khor was quoted as saying by
TMR.

The online marketplace is currently under construction and is expected to be rolled out this year. He is very confident that these measures would help the used car industry in malaysia on doubling the sales to about 800,000 units in five years time. We shall see .

Popular Posts

One
of the most important industries in the manufacturing sector of
Malaysia is the automobile industry. In comparison to other industries,
the automobile industry is a promising and a growing one, and
contributes heavily towards the economic and industrialization process.
Establishment of two Malaysian brands, Proton 1985 and Perodua 1993 increased the importance of the automobile industry even more in the
Malaysian economy. Both brands are heavily supported by the
malaysia government. Located on the Malay Peninsula in Southeast Asia, Malaysia
is also a popular tourist location in the world. As a matter of fact malaysia has been importing large
numbers of used vehicles from various countries across the world, reports had claimed that most are mainly
from Japan.
Moreover the economic savvy Malaysians prefer to buy a used motor vehicle as the new cars are too
expensive. The main reason that contributes towards the popularity of Japanese vehicles
in the country is that Ma…

Buying a Used Car in MalaysiaThere are many used car dealerships and individuals who advertise their cars for sale in local newspapers or magazines. Car magazines, which advertise used cars and dealerships, are
available at book shops and newsstands throughout Malaysia. Most
magazines have a list of used car prices which are categorized
according to model and also by dealership. These magazines are all
available in English.

The process of buying a used car depends on whether the car is being bought from a dealer or from a private seller.

If a car is being bought from a dealer, the process is similar to
that of buying a new car. The exceptions are the transfer document and
loan interest rates. The dealer does the paperwork, and the owner
collects the car when it is done.

If a car is being bought from a private seller, then the paperwork has to be done by the buyer.
The following documents and procedures are needed for the purchase and transfer of a used car:
…